Notwithstanding the Comprehensive Economic Partnership Agreement in place, India is facing market access problems in various sectors in Japan and concerns over this were articulated during the recent visit of Prime Minister Narendra Modi here.
The Indian concerns were conveyed by its top business leaders during a meeting with their counterparts under the framework of Japan-India Business Leaders Forum which later presented its report to Modi and Japanese Prime Minister Shinzo Abe.
At the same time, the Japanese side raised issues regarding transfer policy, taxation and the Goods and Services Tax (GST).
"India has taken up some issues of access in Japan," leading Indian industrialist Baba Kalyani, who is the Co-Chair of the Forum, told PTI.
Kalyani, Chairman and Managing Director of the USD 2.5 billion Kalyani Group of companies, was asked about the areas where access is a problem in Japan. He identified sectors like pharmaceutical, IT and manufactured products.
Of the bilateral trade of USD 16.29 billion in 2013-14, the trade deficit was about USD 3 billion and the Indian side is keen to bridge it.
At present, India's share is less than 1 per cent of total Japanese pharmaceutical market as Indian pharma companies face non-tariff barriers there.
According to industry experts, the CEPA, which has been in place since 2011, is benefiting Japan more.
India's exports to Japan mainly includes petroleum, gems and jewellery, transport equipment and machinery, while imports include iron and steel, electronic goods, chemicals and metals.
Holding out positive prospects for the future of bilateral economic relations, Kalyani said the Japanese businesses are "upbeat" since the Modi government came to power as they feel execution will happen at much faster pace.
"They are more optimistic in investing now," Kalyani said, citing his observation on the basis of interaction with the Japanese business leaders.
Modi was on a visit to Japan from August 30 to September three.
